FTC Investigates Free-to-Play Games Model

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The FTC has announced that they will be looking into the
practices of games that participate in the free-to-play model.
The FTC claims that several politicians have complained over the
lack of regulation and enforcement when it comes to young
children purchasing content unknowingly.

The investigation will check if studios and developers are
correctly identifying content that has to be purchased. A letter
from Rep. Ed Markey (D-Mass.) indicated that children were making
purchases of in-game virtual items without parental consent.

The FTC will look into the matter on games present on the iOS
platform. There are “raised concerns” over practices by
developers, in which consumers might not fully be aware of the
fact that they are making monetary purchases on apps.

"We fully share your concern that consumers, particularly
children, are unlikely to understand the ramifications of these
types of purchases," said FTC chairman Jon Leibowitz. "Let me
assure you we will look closely at the current industry practice
with respect to the marketing and delivery of these types of
applications."

“After the Washington Post first broke this story earlier this
month, I sent the Federal Trade Commission a letter calling on
the agency to investigate the issue of 'in-app' purchases and
provide additional information about the promotion and delivery
of these applications to consumers, especially with respect to
children," Markey said in a statement about the FTC’s decision.

"What may appear in these games to be virtual coins and prizes to
children result in very real costs to parents. I am pleased that
the FTC has responded, and as the use of mobile apps continues to
increase, I will continue to actively monitor developments in
this important area."

Apple has yet to respond to the investigation, but the FTC has
confirmed that the letter was genuine.